Minimax Stores

National Labor Relations Board - Board Decisions

Oct 4, 1950

91 N.L.R.B. 644 (N.L.R.B. 1950)

In the Matter Of MINIMAx STORES and RETAIL CLERKS INTERNATIONAL
ASSOCIATION , A. F. L.
Case No. 39-CA-43.-Decided October 4,1950
DECISION AND ORDER REMANDING CASE TO THE TRIAL
EXAMINER
On February 27, 1950, Trial Examiner Albert P. Wheatley issued
an order granting Respondent's motion to dismiss the complaint
herein upon jurisdictional grounds. The Trial Examiner concluded
that while the operations of the Respondent were substantial and not
wholly unrelated to interstate commerce, they were, nevertheless,
essentially local in character and that it would not effectuate the poli-
cies of the Act to assert jurisdiction in this case. Thereafter, the
General Counsel filed his petition for review of the Trial Examiner's
order alleging that the Trial Examiner's conclusions were erroneous,
that his action in dismissing the complaint herein was in error, and
that the Trial Examiner's order should be reversed and the case re-
manded to him for a finding on the merits of the unfair labor practices
alleged in the complaint.
The Board has considered the petition of the General Counsel, the
briefs of the parties, and the entire record in the case, and for the
reasons appearing below the Board has decided to reverse the action
of the Trial Examiner in dismissing the complaint and to assert juris-
diction herein.
Respondent's Operations
The record discloses that the Respondent is a Texas corporation,
maintaining its principal office and place of business in the city of
Houston, Harris County, State of Texas. It is engaged in the retail
grocery business and operates 11 stores all within the geographical
limits of Harris County. In the course of its operations, Respond-
ent purchases for resale at its retail stores such items as meats, grocery
products, coffee makers, beer, wine, notions, irons, toasters, mixmas-
ters, cosmetics, radios, glassware, kitchen ware and utensils, and other
similar products, securing most of its standard brand products from
91 NLRB No. 114.
644
MINIMAX STORES 645
the Schumacher Company,' a concern engaged in the wholesale
grocery trade. During the year 1949, Respondent's total purchases
amounted to $6,027,620.86. During the same period its sales, all made
locally, amounted to $7,306,749.12. Of the total value of its pur-
chases, $866,272.11 came from the Houston branches of a number of
national concerns,2 and $3,022,500.50 came from the Houston ware-
house of the Schumacher Company. Of the merchandise sold by the
national concerns to the Respondent, merchandise of the value of
$467,643.66 originated outside the State of Texas, and was shipped
by such national concerns directly to their Houston branches. Simi-
larly, of the merchandise sold by the Schumacher Company to the
Respondent, merchandise valued at $2,325,750.35 originated outside
the State of Texas, and was shipped directly to the Houston ware-
house of the Schumacher Company. -
Conclusions
The General Counsel contends that the Respondent is engaged in
interstate commerce within the meaning of the Act and that it would
effectuate the policies of the Act for the Board to assert jurisdiction
herein because, among other reasons,3 the major portion of the Re-
spondent's substantial purchases originate outside the State of Texas.
In general, we agree with the foregoing contention of the General
Counsel. The Board has recently decided' that in instances where
the operations of an employer, in circumstances similar to those of
the instant Respondent, affect the flow of commerce only by way of
an indirect inflow of purchases originating outside the State, such
operations shall not be deemed to affect interstate commerce suffi-
ciently to warrant the Board asserting jurisdiction unless the value
of such purchases amounts to $1,000,000. Under the circumstances
of this case, we find that the Respondent is engaged in commerce
within the meaning of the Act, and, as the Respondent's indirect
purchases from outside the State of Texas amount to more than
$1,000,000, to wit, the sum of $2,793,394.01, that it will effectuate the
1 The Schumacher Company is a Texas corporation maintaining its principal office and
general warehouse in Houston, Texas, and having eight additional warehouses in other
parts of the State of Texas. During the year 1949, total purchases of the Schumacher
Company amounted to approximately $25,970,000, of which 70 percent represented pur-
chases delivered directly to its warehouses from sources outside the State. During the
same period its gross sales, all local , amounted to approximately $29,580,400.
'Representative of such concerns are Rath Packing Company, Armour & Company,
Southwestern Drug Corporation, Kraft Foods, and National Biscuit Company.
3 The General Counsel contends that the Respondent is engaged in interstate commerce
not only by virtue of its own operations in interstate commerce but because of Integration
with the operations of the Schumacher Company, based on common stock ownership,
interlocking directorates , and certain coordinated activities of the two concerns . In view
of our decision herein, we find it unnecessary to pass upon these additional contentions.
* Dorn's House of Miracles , Inc., 91 NLRB 632.
646 DECISIONS OF NATIONAL LABOR RELATIONS BOARD
policies of the Act to assert jurisdiction herein. We shall, therefore,
remand the proceeding to the Trial Examiner for a resolution of the
other issues raised by the pleadings.
ORDER
IT IS HEREBY ORDERED that the order of the Trial Examiner dis-
missing the complaint herein be, and the same is, hereby reversed, and
IT Is FURTHER ORDERED that this proceeding be, and it hereby is, re-
manded to the Trial Examiner for the purpose of preparing and issu-
ing an Intermediate Report setting forth the findings of fact, con-
clusions of law, and recommendations with respect to the unfair labor
practices alleged in the complaint herein.
MEMBER MURDOCK took no part in the consideration of the above
Decision and Order Remanding Case to the Trial Examiner.